AOFM and ASF give an update on forbearance SPV

AOFM and ASF give an update on forbearance SPV

May 19 2020

The Australian Office of Financial Management (AOFM) and Australian Securitisation Forum (ASF) have been working closely together on the establishment of a forbearance special-purpose vehicle (SPV), designed to provide relief to nonbank and small bank lenders with securitisation trusts affected by forbearance on loans as a result of COVID-19. Terms of the Forbearance SPV are being finalised with a view to being operational by late June.

The Forbearance SPV is planned to be administered as part of the AOFM’s structured finance support fund (SFSF), which is already investing in securitisation transactions in primary and secondary markets, and warehouse facilities. Its goal is to help bridge funding gaps for nonbank and small bank lenders created by COVID-19.

On a webinar held on 18 May the AOFM and ASF provided an update to securitisation industry participants on SFSF investment to date and progress on the SPV.

This article from Kanga news reports on the key messages from the webinar.